A Chapter 7 bankruptcy allows you to sell your assets in an effort to move on with a clean, financially free future. Bankruptcy can be an overwhelmingly stressful endeavor and it’s important to understand each aspect of the process, from eligibility and property exemptions to handling secured debts and filing the proper forms.
Step 1: Analyze Debts & Determine Property Exemptions
The first step in filing for a Chapter 7 bankruptcy is looking at your debts and seeing which ones you can discharge in this type of bankruptcy. Financial obligations such as child support, for example, are not dischargeable. You also want to find out what property and assets are exempt from being sold when you file for bankruptcy.
Step 2: Determining Eligibility
If you earn sufficient income to repay your debts or if you’ve recently received a discharge to a previous Chapter 7 bankruptcy, you may not be eligible to file for bankruptcy. There are many factors that are weighed when determining bankruptcy eligibility, therefore, you’ll want to discuss your specific needs with a bankruptcy attorney first.
Step 3: Filling Out & Filing Bankruptcy Forms
There is a high volume of paperwork that needs to completed and filed in order to officially begin your bankruptcy case. You’ll be required to disclose information regarding property, debts, income and expenses along with the names of your creditors and any property exemptions.
Step 4: Handling Secured Debts
Secured debts are debts that involve some type of collateral, such as a mortgage or a car loan. When filling out your bankruptcy forms, you’ll explain how you intend on handling your secured debts and before your bankruptcy case closes, you’re required to prove that your secured debts have been properly managed.
The Rancho Cucamonga bankruptcy attorney at Nguyen Law Group has experience in assisting clients in a wide range of financial matters including estate planning, debt settlements, loan modifications and bankruptcy. If you’re facing a financial burden, contact our office today (909) 328-6280 today.